Home Refinancing Loans

Types of Refinancing Loans

Trouble finding an answer to your loan question?

Refinance today with PennyMac. We are standing by to help you get the information you need to make the best refinancing decisions to meet your personal financial goals.* We offer several types of refinancing options. Use the resources below to explore your options and compare loan features. *By refinancing your existing loan, your total finance charges may be higher over the life of the loan.
Adjustable Rate Mortgages

PennyMac offers hybrid ARMS - adjustable rate loans that carry a fixed interest rate for 5 or 7 years, then the interest rate changes each year based on a market index. ARMs typically start with lower monthly payments than fixed-rate loans, but once the fixed period ends, the payment will change - either up or down - as the interest rate changes with market conditions.

Because your payment and interest rate can increase, you should be prepared financially for any possible increase in rates and payment, if you're considering an ARM.

An ARM could make sense for you if you:

  • Plan to sell your home or refinance before the end of the initial rate period and therefore aren't concerned about possible rate increases
  • Anticipate your income rising enough in the coming years to cover higher mortgage payments if interest rates go up.
  • Want the initial lower payment that the ARM offers to qualify for a larger loan, but can afford to pay the fully indexed rate
  • Believe that mortgage interest rates may decline in the future and can accept the risk if they don't.

When shopping for a mortgage, a 5/1 or 7/1 ARM can be a good choice for some borrowers. Talk to your PennyMac loan officer to see if an adjustable rate loan makes sense for you.

Learn more about our conventional loan options >

Cash Out Refinancing

A PennyMac cash-out refinance gives qualified borrowers the opportunity to refinance their loan with a low rate and get cash from the home’s equity. With a cash-out refinance, you can consolidate debt, finance home improvements, pay for college, or make an investment.

Unlike a home equity loan, which is a second loan, a cash-out refinance replaces your existing mortgage by completely paying off your original mortgage. The cash-out refinance allows you to refinance your mortgage for more than you currently owe and then pocket the difference.

As a rule of thumb, you should consider refinancing when:

  • Current interest rates are substantially lower than your current home-loan rate.
  • You plan on staying in your current home for several more years.
  • You can reduce the term of your loan.

Learn more about our cash-out refinance loan options >

FHA Streamline

The easy and fast way to refinance your FHA loan.

  • Option for borrowers who owe more than home is worth
  • No appraisal, income or credit documentation may be required
  • Existing loan must already be FHA insured 
  • Borrower must be current on payments
  • No cash out permitted
  • Low or no-cost options available

Learn more about the FHA Streamline Refinance >

Fixed Rate Loans

Get a low rate and a payment that doesn't change. We have a wide variety of loan terms to fit your home finance goals.

  • Available in terms from 10 to 30 years.
  • Protection from unexpected payment increases - a stable, fixed principal and interest payment over the life of the loan
  • Available for home purchase and refinance transactions

Learn more about our conventional loan options >

HARP Refinance Program

Even if you owe more on your home than it is worth, you could be able to refinance.

  • Current and prospective PennyMac customers
  • Option for borrowers who owe more than home is worth
  • Streamlined, low documentation income requirements
  • Investment properties OK
  • No out-of-pocket costs options available
USDA Streamlined Assist

A newly expanded refinance loan product with a simplified application process, relaxed eligibility requirements, and dramatically reduced fees for existing USDA borrowers.

  • No appraisal
  • No strict credit score or debt ratio requirements
  • No maximum loan amount

Learn more about the USDA Streamline Refinance >

VA Mortgage Programs

PennyMac is honored to be able to offer our nation's veterans both the VA's Interest rate Reduction Refinance Loans (IRRRL) and VA Cash-Out Refinance Loans.

  • Designed specifically for veterans
  • Issued only by approved lenders
  • Guaranteed by the federal government
  • Flexible guidelines
  • Fixed rate 10,15, 20, 25, and 30-year terms
  • Owner occupied, second homes, and investment properties allowed
  • No private mortgage insurance required
  • Closing costs are rolled into the cost of the loan - no out of pocket expenses
  • Competitive interest rates
  • No need to use your current lender, just a VA-approved lender like PennyMac

Learn more about our VA home loan options >